2004 (2) TMI 608 - AT - Central Excise

Summary

Issues:
Waiver of pre-deposit of duty and penalties arising from the order of the Commissioner of Central Excise.

Analysis:
The judgment pertains to three applications seeking a waiver of pre-deposit of duty and penalties following the order of the Commissioner of Central Excise. The impugned order demanded Central Excise duty, confiscated goods, and imposed penalties on the applicants. The applications were initially adjourned twice without sufficient reasons. Due to the significant duties and penalties involved, the request for further adjournment was rejected, and the stay petitions were taken up for disposal.

The facts of the case revolve around the seizure of PVC cables without proper documentation, leading to a search of the factory premises of the applicants. The investigation revealed clandestine removal of excisable goods using fake invoices, resulting in the evasion of Central Excise duty. The Commissioner's order demanded duty and penalties based on the findings after providing a reasonable opportunity to the assessee.

The applicants sought a stay on the grounds that they had a strong case on merits, the respondents erred in confirming the duty demand, it caused undue hardship without justification, and principles of natural justice were not followed. However, the Tribunal found that the evidence indicated clandestine removal of goods without duty payment, supported by statements from directors and recovered records. The applicants failed to establish a strong or even a reasonable case for invoking the Tribunal's powers to waive pre-deposit of duty and penalties.

Consequently, the Tribunal rejected the stay applications and directed the applicants to deposit the entire duty and penalties within four weeks from the receipt of the order, with compliance due by 30th April 2004.